Vietnam PM Pushes for Halal Expansion

Vietnam is strategically positioning itself to become a major player in the global Halal industry, a market that is projected to grow exponentially in the coming years. With the Halal market set to reach an estimated $10 trillion by 2028, Vietnam’s government, led by Prime Minister Phạm Minh Chính, sees this as a “golden opportunity” for economic growth and international collaboration. The recent national Halal Conference, held in Hanoi, underscored the government’s vision to turn the Vietnam Halal industry into a vital component of the country’s future economic strategy, leveraging its agricultural strengths and expanding international trade networks.

This ambitious plan comes as the global Muslim population, projected to hit 2.8 billion by 2050, presents a vast consumer base that demands products and services that adhere to strict Islamic guidelines. From food and cosmetics to pharmaceuticals and tourism, the Halal sector offers Vietnam a broad and dynamic opportunity to diversify its economy and tap into lucrative markets.

The Potential of the Global Halal Market

The global Halal market encompasses a wide range of products and services that must comply with Islamic dietary laws and lifestyle standards. These guidelines not only cover the food industry but also pharmaceuticals, cosmetics, fashion, and even finance. With the Muslim population continuing to grow, particularly in countries like Indonesia, Pakistan, and Bangladesh, the demand for certified Halal products is skyrocketing.

For Vietnam, a country that has traditionally focused on agriculture and manufacturing, this demand presents an opportunity to expand its export capabilities. According to the Vietnamese Ministry of Foreign Affairs, the Halal market represents a strategic avenue for growth, with the potential to access new consumer bases across Muslim-majority nations. Vietnam’s network of 17 free trade agreements, including partnerships with countries in Southeast Asia, the Middle East, and beyond, provides a solid foundation for this expansion.

At the heart of this growth strategy is trust, particularly in Halal certification. International Halal standards are stringent, and building consumer confidence is essential. As Mohamed Jinna, chairman of Halal India, noted at the conference, certification is not just about meeting technical requirements. It’s about connecting Vietnam with the global Muslim community, ensuring that products meet religious guidelines while maintaining high-quality standards.

The Bridge to Global Markets

One of the most critical aspects of Vietnam’s entry into the global Halal market is the establishment of a robust, internationally recognized Halal certification process. Currently, many businesses in Vietnam face hurdles when it comes to getting certified, largely due to the lack of standardized procedures and recognition from global Halal authorities.

Experts at the national conference emphasized that Vietnam must invest in developing its certification capabilities if it is to compete with established Halal exporters like Malaysia, Indonesia, and the United Arab Emirates. Partnering with internationally recognized Halal certification bodies is essential to ensure that Vietnamese products meet the rigorous standards required to enter Muslim-majority markets.

Yousif AlHarbi, Executive Vice President of Corporate Services at the Saudi Halal Center, highlighted Saudi Arabia’s interest in collaborating with Vietnam. This partnership would focus on building a strong Halal ecosystem that facilitates the flow of certified Halal products between the two nations. Such collaborations are key to ensuring that Vietnamese products can not only meet certification standards but also be distributed widely across global markets.

Vietnam’s Halal Ambitions

Vietnam’s Halal industry extends beyond food production. The country has the potential to become a significant player in various sectors within the Halal economy, such as cosmetics, pharmaceuticals, fashion, and tourism. With Halal tourism on the rise globally, Vietnam is well-positioned to attract Muslim travelers by offering Halal-friendly accommodations, food services, and cultural experiences.

Vietnam’s agricultural prowess also positions the country to become a major exporter of Halal food products. Several Vietnamese companies have already begun exporting Halal-certified products to markets like Saudi Arabia, Malaysia, and Indonesia. Expanding this success across different sectors could dramatically enhance Vietnam’s international economic footprint.

One area where Vietnam is already making strides is in Halal tourism. By tailoring tourism services to meet the needs of Muslim travelers, the country could significantly boost its inbound tourism numbers. With a growing number of Muslim travelers looking for destinations that cater to their religious and dietary needs, Vietnam can tap into this expanding market.

Additionally, the pharmaceutical and cosmetics sectors offer lucrative opportunities for Vietnam’s Halal industry. With Muslim consumers increasingly seeking Halal-certified personal care and medical products, Vietnamese companies have the potential to capture a share of this growing demand by adhering to Islamic standards.

Challenges on the Road to Success

Despite its potential, Vietnam’s Halal industry faces several challenges that could impede its progress. Infrastructure and logistics are among the most pressing concerns. Ensuring that Halal products are produced, processed, and transported according to Islamic law requires a well-developed infrastructure and supply chain. Vietnam will need to invest heavily in upgrading its logistics networks to meet these demands.

Another critical challenge is human resource development. As the demand for Halal-certified products grows, Vietnam must train professionals in Halal standards and practices. This includes educating business leaders, farmers, manufacturers, and regulators on the specific requirements of Halal certification. Without a workforce skilled in these areas, Vietnam risks falling short of international standards, which could hinder its ability to compete in the global market.

Market research is also vital for Vietnamese businesses to understand the preferences and needs of Muslim consumers in different regions. What works in Southeast Asia may not resonate with consumers in the Middle East or Africa. Businesses need to be agile and adaptive, tailoring their products and services to fit the specific cultural and religious expectations of each target market.

Lastly, competition in the global Halal market is fierce. Countries like Malaysia, Indonesia, and Turkey have well-established Halal sectors and strong brand recognition among Muslim consumers. For Vietnam to carve out its niche, it will need to differentiate itself through innovation, quality, and price competitiveness.

Government Initiatives

Recognizing the potential of the Halal market, the Vietnamese government has launched several initiatives to support the development of the Halal industry. These efforts include providing financial incentives and subsidies to encourage businesses to invest in Halal production and certification. The government is also working closely with international organizations to offer training programs and capacity-building initiatives for industry professionals.

In addition, Vietnam has developed a regulatory framework for the Halal industry, which includes standards and guidelines for Halal certification. This framework aims to streamline the certification process and ensure that Vietnamese products meet international Halal standards. The government has also launched promotional campaigns to raise awareness of Vietnamese Halal products in global markets.

Vietnam’s Path to Global Halal Leadership

The future of the Vietnam Halal industry is bright. By addressing the challenges of certification, infrastructure, and human resource development, and leveraging its existing strengths in agriculture and trade, Vietnam has the potential to become a key player in the global Halal market. The country’s strategic location in Southeast Asia, combined with its growing network of international trade agreements, provides a solid foundation for expanding its Halal exports.

Vietnam’s entry into the Halal industry is more than just a business opportunity—it’s a chance for the country to diversify its economy, strengthen international partnerships, and position itself as a trusted supplier of Halal products worldwide. As the global demand for Halal-certified goods continues to rise, Vietnam has a unique window of opportunity to establish itself as a leader in this dynamic and fast-growing industry.

Vietnam’s Halal ambitions are bold, but with the right investments in certification, infrastructure, and international partnerships, the country can capitalize on this burgeoning market. As the Halal industry continues to evolve, all eyes will be on Vietnam as it takes its place on the global Halal stage.